NVIDIA turned nicely lower in May, but then stabilized around the $194 support area and has since seen quite a strong recovery. However, notice that price failed to break above the previous high at $236.61, so we could still be trapped in a higher-degree wave four consolidation. This could unfold either as a triangle or as a deeper ABC correction. In both cases, we think the structure may not be ready to send NVIDIA to new highs just yet, especially after the latest break below trend line support, which suggests that wave C of wave four could still be in the cards. If this develops as a triangle, support could be around $200–$194. A deeper correction could even target the $164 area, so the broader $200–$164 zone could become very important for the next major stabilization on NVIDIA, possibly in the weeks ahead.

Highlights:

• NVIDIA remains below the important $236.61 high.

• The higher-degree wave four correction may still be incomplete.

• A triangle could find support around $200–$194.

• A deeper ABC correction could potentially extend towards $164.

• The $200–$164 area could become an important zone for the next bullish stabilization.

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Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.